Updated April 2026
Official HMRC rates
First‑time buyer focus
Introduction: buying a home in 2026
The UK property market in 2026 continues to evolve with stabilising interest rates and stamp duty thresholds that reflect post‑pandemic adjustments. Whether you're a first‑time buyer, moving home, or purchasing an additional property, understanding both mortgage options and Stamp Duty Land Tax (SDLT) is crucial. This guide combines the latest 2026 data with practical steps to help you budget and save.
Stamp Duty Land Tax (SDLT) – 2026 rates
SDLT is a tax you pay when buying a property or land over a certain price in England and Northern Ireland. (Scotland and Wales have different systems – LBBT and LTT.) The table below shows the residential SDLT rates for 2026 (effective from April 2025, with no major changes announced for 2026).
| Purchase price (portion) | Standard rate |
|---|
| Up to £250,000 | 0% |
| £250,001 – £925,000 | 5% |
| £925,001 – £1.5 million | 10% |
| Over £1.5 million | 12% |
Note: The 0% band was previously £425,000 for first‑time buyers – see below.
🏡 First‑time buyer relief (2026)
If you and everyone else purchasing is a first‑time buyer, you can claim relief on properties up to £625,000. You pay:
- 0% on the first £425,000
- 5% on the portion from £425,001 to £625,000
- If the price is over £625,000, you cannot claim the relief and use standard rates.
➕ Additional property surcharge
Buying a second home or buy‑to‑let? An extra 3% is added to each SDLT band. Companies and trusts may pay even higher rates.
Example 2026 calculation: A first‑time buyer purchases a £500,000 flat. SDLT = 0% on first £425,000 + 5% on remaining £75,000 = £3,750. Without relief, the tax would be 0% on first £250k + 5% on £250k = £12,500. Saving: £8,750.
Mortgage essentials for 2026
Most buyers need a mortgage – a loan secured against the property. Key terms: loan‑to‑value (LTV), term, fixed or variable rate. In 2026, average 2‑year fixed rates hover around 4.5%–5.5%, but they vary by lender and deposit.
Main mortgage types
- Fixed‑rate mortgage – interest rate stays the same for an initial period (2, 5, or 10 years). Popular for budgeting.
- Tracker mortgage – follows the Bank of England base rate plus a set margin.
- Discount mortgage – a discount off the lender’s standard variable rate (SVR) for a period.
- Offset mortgage – link your savings account to reduce interest, but usually higher rates.
How much can you borrow?
Lenders typically offer 4–4.5 times your annual household income. Some go up to 5.5x for high earners or with large deposits. Affordability checks also consider your outgoings, credit score, and stress tests (interest rate +3% typically).
Affordability & budgeting tips for 2026
Deposit size
Aim for at least 10% LTV to access best rates. 5% mortgages exist (guarantee schemes), but rates are higher.
Agreement in Principle
Get an AiP before house hunting – shows sellers you're serious and confirms your budget.
Term length
Longer term (30‑35 years) lowers monthly payments but increases total interest.
Additional costs to factor
- Valuation fee – usually £150–£300 (sometimes free).
- Legal / conveyancing – £800–£1,500.
- Survey (HomeBuyer or building) – £400–£1,200.
- Mortgage arrangement fee – often £0–£2,000 (can be added to loan).
- Stamp duty (already covered).
2026 tip: With rates more stable than in 2023‑24, consider a 5‑year fix if you plan to stay longer. Use a
mortgage calculator to compare total costs.
Quick FAQs – mortgage & stamp duty 2026
Do I pay stamp duty on a buy‑to‑let? Yes, and the 3% surcharge applies.
Can I get a mortgage with a 5% deposit in 2026? Yes, many lenders offer 95% LTV deals, often with higher rates.
What's the stamp duty deadline for filing? You must file an SDLT return and pay the tax within 14 days of completion.
Are there any first‑time buyer mortgage schemes? The Mortgage Guarantee Scheme (95% LTV) continues, plus regional Help to Buy equivalents.
Guide updated for 2026 – based on HMRC and FCA data. Always verify with a qualified advisor.